Inside the Deutsche Bank Scandal: A Dive into Fraudulent Tax Transactions

German prosecutors have searched Deutsche Bank's Frankfurt headquarters due to a probe into alleged fraudulent tax transactions at its Postbank division from 2008 to 2010. The investigation focuses on 'cum-cum' trades, which allegedly cost the German state billions. This marks the third search of the bank in recent times.

German law enforcement officials descended on Deutsche Bank's Frankfurt headquarters as part of an investigation into suspected fraudulent tax transactions tied to its Postbank division, occurring between 2008 and 2010.

The case centers on 'cum-cum' trades, a source told reporters, further confirming reports circulating in German media. These trades involved maneuvering stocks of German companies around dividend payout periods, which authorities claim facilitated significant tax fraud.

This spotlight on Deutsche Bank is part of a broader crackdown that the financial watchdog BaFin estimates could cost the industry as much as €7 billion. This year alone, it marks the third instance of searches at the bank, with previous incidents involving alleged money laundering and issues within its retail banking arm.